Value tax is a tax based on the appraised value of an item, such as real estate or personal property.
The most common ad valorem taxes are property taxes levied on real estate.
– The Latin phrase ad valorem means “depending on value”. Thus, all ad valorem taxes are based on the assessed value of the taxable item.
Taxes on the value of property, ie. property taxes - usually collected by local jurisdictions such as counties or school districts.
Ad valorem taxes are usually levied on both real property (land, buildings and other structures) and large personal property such as a car or boat.